Credit markets
HSH Nordbank alleges fraud by UBS over CDO
HSH Nordbank has filed a suit against UBS, claiming fraud caused it significant losses on a $500 million investment in a subprime mortgage-linked synthetic collateralised debt obligation (CDO) sold to the German bank in 2002.
SEC help sought as auction securities crisis deepens
The trade association representing broker-dealers has confirmed it has been in contact with the US Securities and Exchange Commission (SEC) regarding measures to restore confidence in the troubled auction-rate securities (ARSs) market.
FDIC chairman Bair’s warning on Basel II models
Daily news headlines
Auto loan ABS delinquencies rise
With uncertainty blighting the US economy, auto loan delinquencies have hit 10-year highs.
CPDOs suffer more downgrades
Rating agency Standard & Poor's (S&P) has downgraded 28 of the 29 constant proportion debt obligation (CPDO) transactions it rates.
UK banks show resilience
London-based Barclays has reported improved earnings for 2007, despite a $3.2 billion (£1.6 billion) net loss due to exposures to US subprime loans.
iShares launches two new ETFs on the London Stock Exchange
iShares, the Exchange Traded Fund (ETF) arm of Barclays Global Investors, has launched two new ETFs on the London Stock Exchange (LSE) including the first emerging markets bond fund in Europe. The ETFs were formally listed on the LSE today.
CDOs of ABSs "in deep trouble"
Ninety-eight collateralised debt obligations of asset-backed securities (CDOs of ABSs) rated by New York-based Standard and Poor’s (S&P) have reached so-called events of default (EODs).
AIG admits errors in credit loss estimates
American International Group's (AIG) writedowns on its US subprime exposure were more than triple the original estimate, it emerged yesterday.
Société Générale gets a cash infusion
Société Générale (SG) is the latest of several banks to raise money through the capital markets after suffering multibillion-dollar losses. Unlike several Wall Street banks issuing mandatory convertibles, the French bank will sell stock and give current…
Credit crisis losses could reach $400 billion
Write-offs of losses on securities linked to US subprime mortgages could reach $400 billion, according to German finance minister Peer Steinbrück, speaking after the recent G-7 meeting in Tokyo.
Investigators step up pressure on rating agencies
Criminal investigators and regulators in the US have increased the pressure on credit rating agencies, saying they were "central" to the subprime crisis.
Surprise over "severe" Fitch CDO cuts
Fitch Ratings has outlined possible changes to its approach to rating collateralised debt obligations (CDOs), with downgrades potentially far deeper than the market expected.
Moody’s: transparency will drive CDO investor comeback
The European collateralised debt obligation (CDO) market's ability to offer transparency to investors will determine the speed of their return to the sector, said Moody’s Investors Service.